Deputy Manager-hr
Asso.prof.(commerce & Management) Pg
+1 Other

Respected seniors,
This Ramu working in manufacturing unit as DM-HR at Vijayawada, My query is that our company has taken up expansion project and given contract to construction company for construction of buildings. The construction company is followed by Contract labour Act. Now the construction is propose to give sub contracts to other persons. Is it permissable?. Then what are norms we have to follow as principle employer?
Kindly advice me on this issue
17th March 2017 From India, Vijayawada
I hope, Ramu, your Co while awarding the construction contract to 'A' Construction Co. should have included a clause prohibiting them resorting to 'sub contracting'. Check your contract conditions. Generally such clauses are added with a rider saying "sub-contracting whole or part of this contract is prohibited. In case of need arises it shall be the discretion of our co. either to accede or deny. Failure to do so result in cancellation/termination of your contract....." So first check your contract/WO and then decide how to deal with it.
17th March 2017 From India, Bangalore
Thanks for your reply sir . But we have not mentioned in work order such type of conditions. Construction company (A) is planning to give some portion of works to "B" Agency. The "B" agency is having separate PF, ESI codes. Is it permissable? Whether "B" agency has to get labour license under CLRA ? Can construction company "A" issue Form-V to "B" agency
Kindly advice on this issue
18th March 2017 From India, Vijayawada
Provision must be there to engage sub contractor. For exigency of work, you can still approach Principal employer to allow to avail the services of sub contractor. Once PE accepts, he can extent form V to sub contractor to get licence from concerned labour authorities.Provision exists.
18th March 2017 From India, Nellore
Are you willing to accede to their intentions of 'sub contracting' ? You should be convinced of the sincerity and purpose of this on the part of your contractor. Check their licence and other documents before hand. And If you are willing, you should issue the amended WO to this effect, take an indemnity bond from your contractor to indemnify you against all consequent liabilities.
20th March 2017 From India, Bangalore
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